MNI China Daily Summary: Friday, February 3

MNI BRIEF: Professional Forecasters Up Inflation Outlook: ECB

MNI BRIEF: China To Fully Reopen Borders With HK and Macau

MNI DATA FORECASTS: RBA, Riksbank In Focus

MNI: US ISM JAN SERVICES COMPOSITE INDEX 55.2

RBA Watch

(RPT)MNI INTERVIEW: BOC In One And Done Zone - Chamber

Rpt- MNI INTERVIEW: BOC Losses May Dent Inflation Fight- Tombe

MNI BRIEF: EU Sees Statement After UK-EU Talks This Afternoon

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USDCAD TECHS

Key Support Remains Exposed

AUDUSD TECHS

Pullback Extends, But Still Looks Corrective in Nature

US TSYS

FED Remains in Play Post-NFP/ISM Data

US TSYS

Implied Vol Buoyed Post-NFP/ISM, Real Vol Delivered

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President Biden To Conclude Infrastructure Tour In Philadelphia

US STOCKS

Late Equity Roundup: Early Support Evaporates Ahead Weekend

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Futures Away From Lows, Curve Steepens

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The defensive price action surrounding the COVID situation in China allowed JGB futures to tick higher during the Tokyo morning, with the contract unwinding just over half of its overnight session lessons come the lunch bell, printing -5.

  • Still, weakness in some of the core global FI markets on Friday has seemingly weighed on the wider JGB sphere, with the major benchmarks running little changed to 5bp cheaper as the curve bear steepens (10s are limited by the upper boundary of the BoJ’s permitted trading band).
  • Local headline flow remains light.
  • The latest round of BoJ Rinban operations generated the following offer/cover ratios:
  • 1- to 3-Year: 2.26x (prev. 3.54x)
  • 3- to 5-Year: 1.98x (prev. 1.62x).
  • 5- to 10-Year: 2.35x (prev. 2.60x).
  • 10- to 25-Year: 1.33x (prev. 3.04x).
  • On the corporate issuance side, Berkshire Hathaway has mandated banks for a potential benchmark JPY bond offering, which may have added some weight to the longer end of the curve after the early catch up to Friday’s cheapening impetus in U.S. Tsys.
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The defensive price action surrounding the COVID situation in China allowed JGB futures to tick higher during the Tokyo morning, with the contract unwinding just over half of its overnight session lessons come the lunch bell, printing -5.

  • Still, weakness in some of the core global FI markets on Friday has seemingly weighed on the wider JGB sphere, with the major benchmarks running little changed to 5bp cheaper as the curve bear steepens (10s are limited by the upper boundary of the BoJ’s permitted trading band).
  • Local headline flow remains light.
  • The latest round of BoJ Rinban operations generated the following offer/cover ratios:
  • 1- to 3-Year: 2.26x (prev. 3.54x)
  • 3- to 5-Year: 1.98x (prev. 1.62x).
  • 5- to 10-Year: 2.35x (prev. 2.60x).
  • 10- to 25-Year: 1.33x (prev. 3.04x).
  • On the corporate issuance side, Berkshire Hathaway has mandated banks for a potential benchmark JPY bond offering, which may have added some weight to the longer end of the curve after the early catch up to Friday’s cheapening impetus in U.S. Tsys.